New Mexico's budget outlook became grimmer on Wednesday.At the State's Legislative Finance Committee meeting, analysts predicted an $18.5 million budget shortfall.The committee said it wants to know how bad things really are before they decide how much will get cut and new estimates will be out in just six weeks, but state agencies are being warned to brace themselves that cuts are on the way.The IFC knew we'd be short, but kept hoping -- quarter after quarter -- the upturn would be right around the corner, but pages of projections released Wednesday showed that's not the case.The national issue is being felt on the local level.Until the committee knows how short the state is going to be, they're holding off on making cuts.Even if they did impose cuts now, analysts question whether they'd be in place by the time the next revenue estimates are due, but all agencies are being told to prepare for 3 percent to 5 percent cuts come 2011.Of equal concern to the IFC are the promises of no new taxes and no cuts to education and Medicaid being made by both gubernatorial candidates.There is some good news. Certain economic indicators like sales tax receipts suggest the downturn might be leveling out, but not before taking this hit.

The committee said it wants to know how bad things really are before they decide how much will get cut and new estimates will be out in just six weeks, but state agencies are being warned to brace themselves that cuts are on the way.

The IFC knew we'd be short, but kept hoping -- quarter after quarter -- the upturn would be right around the corner, but pages of projections released Wednesday showed that's not the case.

The national issue is being felt on the local level.

Until the committee knows how short the state is going to be, they're holding off on making cuts.

Even if they did impose cuts now, analysts question whether they'd be in place by the time the next revenue estimates are due, but all agencies are being told to prepare for 3 percent to 5 percent cuts come 2011.

Of equal concern to the IFC are the promises of no new taxes and no cuts to education and Medicaid being made by both gubernatorial candidates.

There is some good news. Certain economic indicators like sales tax receipts suggest the downturn might be leveling out, but not before taking this hit.